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espite legal uncertainties in Indonesia'€™s coal policies, Australian companies remain keen to expand their businesses, saying they have long-term investment plans.

Visiting Australia Parliamentary Secretary for Trade Kelvin Thomson said in Jakarta on Tuesday that Australian'€™s firms continued to view Indonesia as a key country for their business.

'€œCompanies have been talking to me about the patience and perseverance they need [to do business in Indonesia],'€ he told The Jakarta Post on the sidelines of the seventh Australian Mining Exhibition and Conference, or Ozmine2013, referring to some of the legislation and bureaucratic hurdles that often cause foreign investors to flee the country.

Indonesia was considered '€œthe worst'€ of the 10 least-attractive countries for mining, according to the results of a survey by the Canadian think tank, the Fraser Institute, which were released on Feb. 28.

Out of 96 countries assessed, Indonesia was ranked 96th, down from 85th last year, 70th out of 79 countries in 2010 and 62nd out of 72 in 2009.

Decentralization or regional autonomy was seen in the survey as disruptive as it authorizes local administrations to issue permits for mining operations in their territory.

The banning of mineral ore exports as of 2014 also disturbed the Fraser Institute because it requires miners to build smelters here. Another policy, which requires foreign mining companies to divest the majority of their shares to local entities, also worsened the investment climate, according to the institute.

Commenting on this, Thomson said Australian companies did not see the extraction business as their sole avenue for doing business in Indonesia, adding that other aspects, such as mining equipment, technology and services, could also provide opportunities for the companies.

'€œWe have 45 companies operating 172 projects, which reflects the fact that Australian companies see good opportunities here. Mining is a very substantial business for us and we see Indonesia as a key partner,'€ he said.

At least 45 Australian mining companies now possess an interest in 172 projects in Indonesia, up from 38 companies and 140 projects a year ago. Also, more than 100 Australian mining-related organizations are participating at the Ozmine2013 exhibition and conference.

In March this year, the Brisbane Times reported that the Western Mining Network, an ASX-listed mining exploration company, had hired Panji Trihatmodjo, the grandson of former president Soeharto, '€œto help navigate the country'€™s shifting and complex regulatory and business environments'€.

Thomson told the Post that while he could not comment on a specific corporation'€™s actions, he acknowledged that some companies would hire local people who had knowledge of the local environment and culture.

'€œThat can be an advantage in terms of establishing a successful project,'€ he said.

Separately, Indonesia'€™s Deputy Energy and Mineral Resources Minister Susilo Siswoutomo said in a speech delivered before participants at the exhibition that the country would need a lot of foreign investment, including Australian, to develop its mining sector.

'€œOur mining industry is growing rapidly and we need foreign investors. We have resources that have yet to be explored,'€ he said.

Both Indonesia and Australia are among the world'€™s largest coal exporters. At the same time, Indonesia is among the top-five destinations for Australia'€™s mining exports, according to Australian business association Austmine'€™s executive officer, Robert Trzebski.